lOMoARcPSD|22123008

A PROJECT REPORT

ON

“A STUDY OF PERFORMANCE APPRAISAL SYSTEM IN BHARAT

SANCHAR NIGAM LIMITED”

Under the guidance of

MS.MADHURI

Submitted by

(MUNAKALA BHARATH TEJA REDDY)

HT.NO. :201020684003

In partial fulfillment of the requirement for the award of the degree of

BACHELOR OF BUSINESS ADMINISTRATION

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|| ACKNOWLEDGEMENT ||

I thank to the people who helped and supported me during the making of this
Project and the report.

My deepest thanks to lecturer [MS.MADHURI MAM] the guide of the project for
guiding and correcting various documents of mine with attention and care.

I would also thank [xxxxxxx] without whom this project would have
been a distant reality.

Place: MUNAKALA BHARATH TEJA REDDY

[APR-2023-BBA-3]
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LITTLE FLOWER DEGREE AND PG COLLEGE

UPPAL, HYDERABAD - 500039

Affiliated to Osmania University

Department Of Management

CERTIFICATE

This is to certify that the project report entitled "A STUDY OF

PERFORMANCEAPPRAISALSYSTEM IN BHARAT
SANCHAR NIGAM LIMITED" is a bonafide work undertaken by
MUNAKALA BHARATH TEJA REDDY and HT.NO:201020684003 has
completed his project work during the academic year of 2020-2023 carried out
in partial fulfilment of the requirement for the award of
degree in Bachelor of Business Administration under my
guidance. This project work is original and not
submitted earlier for the award of any degree or
diploma into any other institution or university.

Project Guide and HOD

Department of Management
MS.MADHURI
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DECLARATION

I, MUNAKALA BHARATH TEJA REDDY hereby declare that the report of the

project entitled “A STUDY OF PERFORMANCE APPRAISAL SYSTEM IN

BHARAT SANCHAR NIGAM LIMITED” submitted by me to the Department

of Business Management, Little Flower Degree and PG College, Uppal,

Hyderabad is the bonafide work undertaken by me and is not submitted to any

other university or insitution for the award of any degree or diploma certificate or

publish any time before.

MUNAKALA BHARATH TEJA REDDY

HT.NO.: 201020684003

Place: Hyderabad

Date:
 lOMoARcPSD|22123008

ABSTRACT

Most organizations have a performance appraisal (PA) program that

has evolved over time and is likely not meeting the needs of
employees and
managers. Many competing PA theories and practices exist making
development of an effective program difficult. However, done well, a
strong PA program reinforces organizational culture and helps
employees achieve high levels of performance.

An effective PA program can improve key business measures such

as Return on Assets, Return on Equity, profit margins and earnings.

Every strong PA program has three elements: performance tracking,

informal feedback, and formal appraisal.

Build on these three elements to customize your program to your

organization’s goals and values:

1. Informal coaching is the single most significant factor in easing

retention and developing talent.

2. Forced ranking and forced distribution are techniques that work

well in competitive environments.Avoid them in team-based
departments.

3. 360-degree evaluations help to improve people management

abilities.
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TABLE OF CONTENT
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CHAPTER-1

INDUSTRY PROFILE
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INTRODUCTION

Telecom services have been acknowledged globally as an essential tool for the

socio-economic development of a nation. India is currently the world’s second-

largest telecommunications market and has registered exceptional growth in the

past few years.

Telecommunications is one of the prime support services needed for rapid growth

and modernisation of various sectors of the economy. Driven by strong adoption of

data consumption on handheld devices, the total mobile services market revenue in

India will reach US$29.8 billion in2014 and is expected to touch US$37 billion in

2017, registering a compound annual growth rate (CAGR) of 5.2 per cent,

according to research firm IDC.

The rapid strides in the telecom sector have been facilitated by liberal policies of

the Government of India that provides easy market access for telecom equipment

and a fair regulatory framework for offering telecom services at affordable prices.

The deregulation of foreign direct investment (FDI) norms have made the sector
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one of the fastest growing and a top five employment opportunity generator in the
country.

Telecom is one of the fastest-growing industries in India. Today India stands as the
second-largest telecommunications market in the world. The mobile phone industry
in India would contribute US$ 400 billion in terms of gross domestic product
(GDP) of the country in 2014. This sector which is growing exponentially is
expected to generate about 4.1 million additional jobs by 2020, as per Groupe
Speciale Mobile Association (GSMA).

In the period April 2000 to January 2014, the telecom industry has got in foreign
direct investments (FDI) of about US$ 59,796 million, which is an increase of 6 per
cent to the total FDI inflows in terms of US$, as per report published by
Department of Industrial Policy and Promotion (DIPP).

India’s global system for mobile (GSM) operators had 4.14 million rural subscribers
as of January 2014, bringing the total to 285.35 million.

Data traffic powered by third generation (3G) services grew at 146 per cent in India
during 2013, higher than the global average that saw usage double, according to an
MBit Index study by Nokia Siemens Networks (NSN).

India's smartphone market grew by 171 per cent in 2013, to 44 million devices from
16.2 million in 2012, as per research firm IDC India. The increasing popularity of
bring-your-own-device (BYOD) in the workplace is further adding momentum to
the smartphone market.
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Indian telecom industry has grown from a tele-density of 3.58% in March 2001 to
74% in June 2013. This great leap in both number of consumers as well as revenues
from telecom services has not only provided sufficient contribution in Indian GDP
growth but also provided much needed employment to India youth.

Market size

The number of telephone subscribers in India increased from 933 million in March
2014 to 935.81 million (Wireless- 907.44 million, Wireline- 28.36 million) in April
2014, as per data released by the Telecom Regulatory Authority of India (TRAI).

The country’s GSM operators added 2.10 million rural users in June 2014 taking
their total to 302.73 million, according to data released by Cellular Operators'
Association of India (COAI).

Bharti Airtel has the maximum rural users at 96.63 million as of June 2014, whereas
Vodafone added the maximum during the month of June to take its rural user base
to 90.91 million. Idea Cellular's rural subscriber base stood at 76.85 million at the
end of the month, whereas that of Aircel and Uninor stood at 25.96 million and
12.38 million, respectively.
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As of May 2014, the top three telcos - Bharti Airtel, Vodafone and Idea Cellular -
have garnered market shares of 28.41 per cent, 22.95 per cent and 18.79 per cent,
taking their subscribers to over 208 million, 168 million and 137 million,
respectively.

Players in the market

BSNL is the market leader with a 67.7 per cent share followed by MTNL with 11.5
per cent market share. Next is Bharti Airtle at 10.9% followed by Tata and Reliance
at 5% and 4.1% respectively.

BSNL as a company is growing and showed annual revenues of approximately $4.5

billion as of 2014. BSNL is serving more than 125 million customers across the
country and is catalyst in checking the price point for telecom services.

Also, with the government intensifying its rural focus, only BSNL can turn into
reality the next wave of rural telecom penetration.

BSNL is a 100% Central Government entity and employees with BSNL are entitled
to get salaries and perks as decided by Government of India and not by BSNL

However both, MTNL and BSNL are plagued by declining revenues coupled with
high costs. BSNL has massive infrastructure, manpower, systems, and 80 per cent
of landlines and 90 per cent of broadband connections in India are operated by it.
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“Vodafone is investing nearly US$ 3 billion over the next two years in India in
expanding its network infrastructure and distribution channel in the country,” as per
Vittorio Colao, CEO, Vodafone Plc.

BlackBerry plans to set up enterprise solutions centres to educate corporate

customers about various BlackBerry Enterprise Service (BES) 10 solutions. "India
is one of the fastest growing markets in terms of smartphone and mobile data
adoption,” said according to Sunil Lalvani, Managing Director (MD), BlackBerry
India.

Tata Teleservices plans to set up nearly 4,000 wi-fi hotspots in nine cities across the
country in the next two years.

Investments

FDI in the telecom sector, which includes radio paging, cellular mobile, and basic
telephone services, grew manifold to Rs 13,889 crore (US$ 2.25 billion) during
April-July 2014. FDI inflows in the sector during the period April 2000-July 2014
stood at Rs 80,608.47 crore (US$ 13.1 billion), as per data released by Department
of Industrial Policy and Promotion (DIPP). The following are some of the major
investments and developments in the Indian telecom sector:

Reliance Jio Infocomm has signed an agreement to share 500 towers of Videocon
Telecom in UP(W), UP(E), Bihar and Jharkhand, as it aims to roll out its high speed
data and voice services faster and at a lower cost across India.

Idea Cellular joined hands with Opera Software and Quikr to offer sponsored
mobile data through 'Sponsored Web Passes' to Idea’s 137 million plus customers in
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India. Under the arrangement, Idea customers will get free 10 MB data usage for an
entire day.

Larsen and Toubro (L&T) has won a contract worth Rs 2,442 crore (US$ 396.91
million) from Bharat Sanchar Nigam Ltd (BSNL) to supply, trench, lay, install, test
and commission optical fibre cable network which will establish optical national
long distance backbone and optical access routes for the defence network.

Aircel has launched 4G services across four circles - Andhra Pradesh, Assam, Bihar
and Odisha - making it the second operator to launch the services in the country.
With this launch, Aircel now offers services under all the three existing telecom
technologies (2G, 3G and 4G LTE). Further, the company has tied up with
Micromax to launch the latter's new 3G smartphone - Canvas Beat.

Bharti Airtel, the country’s largest mobile operators by revenue and subscribers, has
launched a 3G Wi-Fi dongle that enables downloads of up to 21.6 mbps. This speed
is more than double of the present 9.8 mbps.

Nokia Networks has won a dozen deals with major Indian operators during the first
half of 2014, as compared to the 16 deals signed last year.

Booming sectors

The tide has turned for the telecom sector in India, as growth and profitability has
accelerated in recent times. Tower companies are reaping benefits of a turnaround
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in the sector as operators have started investing in networks to boost data

penetration.

However it is in the country’s booming mobile segment in which the major battles
are being fought. Three major private players – Bharti, Reliance and Vodafone -
with a formidable 54% share of the market between them, lead a large field of
mobile operators. State-owned enterprises –BSNL and MTNL – have also been
making their presence felt with a combined market share of 12%.

Government Initiatives

The Government of India plans to invest Rs 39,458 crore (US$ 6.41 billion) in
BSNL and Mahanagar Telephone Nigam Ltd (MTNL) over the next five years.

The Department of Telecom (DoT) plans to set up an application development

centre with an outlay of Rs 1,000 crore (US$ 162.92 million) over a three-year

period. The move aims to generate income for the Universal Services

Obligation (USO) fund in addition to the revenue share received from telecom

operators. The Ministry of Communication and Information Technology is

planning to extend basic mobile coverage, including voice calling, in far-flung
areas of eight
northeastern states, at an estimated cost of over Rs 5,000 crore (US$ 812.63
million).
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While approximately Rs 2,400 crore (US$ 390.06 million) will be spent as capital
expenditure (tower installation and laying cables), the remaining Rs 2,670
crore (US$ 433.94 million) would be for maintenance and operation expenditure
(op-ex) over a five-year-period.

The government has planned to establish a close to 1,200 km direct subsea optic
fibre cable link between the Indian mainland and Andaman and Nicobar Islands to
improve telecom connectivity in this strategically located archipelago.

Road Ahead

India will emerge as a leading player in the virtual world by having 700 million
internet users of the 4.7 billion global users by 2025, as per a Microsoft report.

The National Telecom Policy, 2012, has visualised doubling the current telecom
capacity and increasing its reach to over 95 per cent of India while providing
broadband level of internet capability. Revenue from the fixed broadband services
in India is expected to grow at 7.8 per cent annually to reach US$ 2.12 billion by
2017, on back of demand for bandwidth driven by cloud and video, according to
IDC.

It has also been predicted by Ericsson that India's mobile subscriber base will grow
from 6.8 billion in Quarter 1 (Q1) of 2014 to 9.2 billion by the end of 2019.
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According to Craig Wigginton, vice chairman and U.S. Telecommunications leader,

Deloitte & Touche LLP, the big challenge for the telecom industry in 2014 – which
also presents a major growth opportunity for the sector – is that consumers are
getting addicted to connectivity and speed.

The ongoing expansion of the mobile ecosystem, coupled with demand for high-
bandwidth applications and services such as video and gaming, is keeping pressure
on the industry to increase the availability and quality of broadband connectivity.

What does this mean for players in the sector? Carriers will continue to pursue
technological advancements to handle demand, including offloading some mobile
bandwidth needs to Wi-Fi, which is proving an effective complement to mobile
networks. At the same time, long-term spectrum availability, spectrum efficiency,
small cells and continued backhaul improvements are likely to be a key focus to
assure continued mobile broadband momentum.

Latest update: September, 2014

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Wireless and wireline revenues in India

Wireless and wireline revenue increased at a CAGR of 10.4 per cent to US$ 39.1
billion over FY06-13.

Wireless market share in terms of total subscribers in India

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CHAPTER-2

COMPANY PROFILE
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INTRODUCTION

TYPE COMMUNICATION SERVICE PROVIDER

AVAILABILITY COUNTRYWIDE

OWNER GOVERNMENT OF INDIA

KEY PEOPLE CHAIRMAN & DIRECTOR-RAJESH KUMAR UPADHYAY

FOUNDED 19TH CENTURY, INCORPRATED IN 2000

WEBSITE WWW.BSNL.IN

2.1OVERVIEW OF THE BSNL:

BSNL is India's oldest and largest Communication Service Provider (CSP).

Currently BSNL has a customer base of 64.8 million (Basic & Mobile
telephony). It has footprints throughout India except for the metropolitan cities of
Mumbai and New Delhi which are managed by MTNL. As on March 31, 2007
BSNL commanded a customer base of 33.7 million Wire line, 3.6 million
CDMA-WLL and 27.5 million GSM Mobile subscribers. BSNL's earnings for the
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Financial Year ending March 31, 2006 stood at INR 401.8b (US$ 9.09 b) with net
profit of INR 89.4b (US$ 2.02 billion). Today, BSNL is India's largest Telco and
one of the largest Public Sector Undertaking of the country with
authorized share capital of US$ 3.95 billion (INR 17,500 Crore) and
net worth of US$ 14.32 billion.

2.2 PROFILE OF ORGANISATION:

 OVER VIEWS OF ORGANISATION

HISTORY:-

The foundation of Telecom Network in India was laid by the British sometime in
19th century. The history of BSNL is linked with the beginning of Telecom in India.
In 19th century and for almost entire 20th century, the Telecom in India was
operated as a Government of India wing. Earlier it was part of erstwhile Post &
Telegraph Department (P&T). In 1975 the Department of Telecom (DoT) was
separated from P&T. DoT was responsible for running of Telecom services in entire
country until 1985 when Mahanagar Telephone Nigam Limited (MTNL) was
carved out of DoT to run the telecom services of Delhi and Mumbai. It is a well
known fact that BSNL was carved out of Department of Telecom to provide level
playing field to private telecoms. Subsequently in 1990s the telecom sector was
opened up by the Government for Private investment, therefore it became necessary
to separate the Government's policy wing from Operations wing. The Government
of India corporatized the operations wing of DoT on October 01, 2000 and named it
as Bharat Sanchar Nigam Limited (BSNL).BSNL operates as a public sector.
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“MAIN SERVICES BEING PROVIDED BY BSNL”

BSNL provides almost every telecom service, however following are the main

Telecom Services being provided by BSNL in India:-

1. UNIVERSAL TELECOM SERVICES: Fixed wire line services & Wireless

in Local loop (WLL) using CDMA Technology called bfone and Tarang
respectively. BSNL is dominant operator in fixed line. As on March 31, 2007
(end of financial year) BSNL had 76% share of fixed and WLL phones.

BSNL MOBILE PRE-PAID MOBILE

2. CELLULAR MOBILE TELEPHONE SERVICES: BSNL is major

provider of Cellular Mobile Telephone services using GSM platform under
brandname Cellone. Pre-paid Cellular services of BSNL are know as Excel.
As on March 31, 2007 BSNL had 17% share of mobile telephony in the
country.

BSNL Broadband
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3. INTERNET: BSNL is providing internet as dial-up connection (Sancharnet)

and ADSL-Broadband Data one. BSNL has around 50% market share in
broadband in India. BSNL has planned aggressive rollout in broadband for
current financial year.
4. Intelligent Network (IN): BSNL is providing IN services like televoting, toll
free calling, premium calling etc.

 BSNL PRESENT & FUTURE

Since its corporatisation in October 2000, BSNL has been actively providing
Connections in both Urban and Rural areas and the efficiency of the company has
drastically improved from the days when one had to wait for years to get a phone
connection to now when one can get a connection in even hours. Pre-activated
Mobile connections are available at many places across India. BSNL has also
unveiled very cost-effective Broadband internet access plans (Data One) targeted at
homes and small businesses. At present BSNL enjoy's 47% of market share of ISP
services.

Year of Broadband 2007

Former Indian Communications Minister Thiru Dayanidhi Maran had declared year
2007 as "Year of Broadband" in India and BSNL is gearing up to provide 5 million
Broadband connectivity by the end of 2007. BSNL has upgraded existing Dataone
(Broadband) connections for a speed of up to 2 Mbit/s without any extra cost. This
2 Mbit/s broadband service is being provided by BSNL at a cost of just US$ 5.5 per
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month. Further, BSNL is planning to upgrade its broadband services to Triple play
(telecommunications) in 2007.

BSNL has been asked to add 108 million customers by 2010 by Former Indian
Communications Minister Thiru Dayanidhi Maran. With the frantic activity in the
communication sector in India, the target appears achievable, however due to
intense competition in Indian Telecom sector in recent past BSNL's growth has
slowed down.

BSNL is pioneer of Rural Telephony in India. BSNL has recently bagged 80% of
US$ 580 m (INR 2,500 crores) Rural Telephony project of Government of India.

CHALLENGES:-

During Financial Year 2007-2008 (From April 01, 2006 to March 31, 2007)
BSNL has added 9.6 million new customers in various telephone services taking its
customer base to 64.8 million. BSNL's nearest competitor Bharti Airtel is standing
at a customer base of 39 million. However, despite impressive growth shown by
BSNL in recent times, the fixed line customer base of BSNL is declining. In order
to woo back its fixed-line customers BSNL has brought down long distance calling
rate under One India plan, however, the success of the scheme is not known.
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However, BSNL faces bleak fiscal 2006-2007 as users flee, which has been
accepted by the CMD BSNL.

Presently there is an intense competition in Indian Telecom sector and various

Telco’s are rolling out attractive schemes and are providing good customer services.
However, BSNL being legacy operator and its conversion from a Government
Department earns lot of criticism for its poor customer service. Although in recent
past there have been tremendous improvement in working of BSNL but still it is
much below the Industry's Expectations. A large aging (average age 49 years
(appx)) workforce (300,000 strong), which is mostly semiliterate or illiterate is the
main reason for the poor customer service. Further, the Top management of BSNL
is still working in BSNL on deputation basis holding Government employee status
thus having little commitment to the organisation. Although in coming years the
retirement profile of the workforce is very fast and around 25% of existing
workforce will retire by 2010, however, still the workforce will be quite large by the
industry standards. Quality of the workforce will also remain an issue.

Access Deficit Charges (ADC, a levy being paid by the private operators to BSNL
for provide service in non-lucrative areas especially rural areas) has been slashed by
37% by TRAI, w.e.f. April 01, 2007. The reduction in ADC may hit the bottom-line
of BSNL.
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VISION

• To become the largest telecom Service Provider.

MISSION

 To provide world class State-of-art technology telecom services to its

 Customers on demand at competitive prices.
 To Provide world class telecom infrastructure in its area of operation and to
Contribute to the growth.
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OBJECTIVE:-

 MP Telecom looks over the management, control and operation of the

telecom
 network with the following aims and objective
 To build a high degree of customer confidence by sustaining quality and
reliability in service.
 To upgrade the quality of telecom service to international level.
 Provision of telephone connections on demand in all the villages of M.P.
 Expansion of new services like Internet, Intelligent Network, ISDN, Internet
Telephony, Video Conferencing, Broadband etc.
 Popularize Broadband Services and to be on-demand in the whole State.

 Expansion of Cellular Mobile Telephone to all towns.

 To open Internet Kiosks (Cafe's) at all Block Head Quarters.
 To improve the quality of present services being given to the subscribers.
 To open more Customer Service Centers and upgrade the existing Customer
Service Centers for better and friendly Customer care.
 Modernize PSTN network by making RSUs & AN-RAX.
 Plantation of Trees to make environment Clean & Green.
 To raise necessary financial resources for its developmental needs.
 To increase accessibility of services, by providing a large number of Local
and
NSD/ISD Public Call Offices (PCOs) so as to reach out to the masses.
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Products

• BSNL LANDLINE

• BSNL MOBILE

_ POSTPAID
_ PREPAID
_ UNIFIED MESSAGING
_ GPRS/WAP/MMS
_ DEMOs
_ TARIFF

• BSNL WLL

• INTERNET SERVICES
_ NETWORK
_ BROADBAND
_ WI-FI
_ CO-LOCATION SERVICE
_ BSNL WEB HOSTING
_ DIAL UP INTERNET
_ SMS& BULK SMS
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• BSNL BROADBAND
• BSNL MANAGED NETWORK SERVICES
• BSNL MPLS-VPN
• ISDN
• LEASED LINE
• INTELLIGENT NETWORK
_ FREE PHONE SERVICE
_ PREMIUM RATE SERVICE
_ INDIA TELEPHONE CARD
_ VIRTUAL PRIVATE NETWORK (VPN)
_ VOICE VPN
_ UNIVERSAL NUMBER
_ UNIVERSAL PERSONAL NUMBER
_ TELE VOTING
• VIDEO CONFERENCING
• AUDIO CONFERENCING
• TELEX/ TELEGRAPH
• EPABX
_ EPABX
_ FREE EPABX
_ CENTREX
• HVNET
• INMARSAT
• TRANSPONDER
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SWOT Analysis

(Strength / Weakness/ Opportunities / Threats)

● Strength
The telecom sector is poised for continued high growth and our company is well

placed to benefit from this phenomenon. BSNL is the largest telecom operator

providing all kind of telecom services throughout the country. The widest network

reach of the company is its USP.

● Weakness
BSNL being Government Company has no any major weakness in the business.

● Opportunities
Having biggest infrastructure provider it is easy for company to enter into any

area. BSNL has vast range of product as well as better infrastructure it makes the to

deal with any kind of customer. Dealing in urban area now it has also

opportunities in rural area.

● Threats
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The company operates in an industry, which is highly competitive and faces intense

Competition from other service provider, who enjoy certain advantages in their

Procurement as well as in selection of technology.

BSNL have several regional offices to localize

its operations in India

REGIONAL OFFICES
OF
BSNL

DEHRADUN MEERUT

DELHI
LUCKNOW
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GROWTH PLAN OF BSNL

BSNL's future plan include a fast expansion programme of increasing the present
93 million lines to twice that number by 2009 and some 120 million lines by 2010.
The shift in demand from voice to data domination, and from wire line to wireless,
has revolutionized the very nature of the network. BSNL has already set in place
several measures that should enable it to evolve into a fully integrated multi-
operator by 2009 and its incumbent status, size, infrastructure and human resource
should certainly, give it a distinct advantage.
Consolidation of the network and maintaining high quality of service comparable to
International standards is the key aim of the Growth Plan. Objective of the plan are:
 The telephone connection shall be provided on demand and it shall be sustained.
 The Network shall be made fully digital. All the technologically obsolete analog
exchanges will be replaced with digital exchanges.
 To provide digital transmission links up to all SDCAs.
 Digital connectivity shall be made available to all the exchanges by 2007-09
 Extensive use of Optical fiber System in the local, Junction and long distance
network so as to make available sufficient bandwidth for the spread of Internet
and Information technology.
 ISDN services shall be extended to all the district headquarters, subject to
demand.
 To provide Intelligent Network Services, progressively all over the country
(major cities have already been covered).
 To set up Internet Nodes progressively up to District headquarters level.
Upgrading existing STD/ISD PCOs to full fledged Public Tele-Info Centers (PTIC)
for supporting Multi media capability and Internet Access
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CHAPTER-3

PERFORMANCE APPRAISAL
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3.1 PERFORMANCE APPRAISAL

Management Performance appraisal is a method of evaluating the evaluating the b

ehavior of employees Performance appraisal or merit rating is one of the oldest

and most universal practices of in the work spot, Normally including both the qua

ntitative and qualitative aspects of job performance. Performance appraisal c

an be an effective instrument for helping people grow and develop in organization
al setting. Through a Well organized appraisal system. An employee can create le
arning spaces for himself in an organization.

Effectively practiced and development oriented performance appraisal &

Review system, substantially contribute to the organization health. Organization
cannot do away with PERFORMANCE APPRAISAL. Some form of assessment of
performance on a continuing basis is essential for survival as well as growth of an
organization. If and develop yardsticks to measure it, if you want to improve per
formance. The performer has to be able to understand it.
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Performance appraisal is a systematic appraisal of the employee’s personality

traits and performance on the job and is designed to determine his contribution and
relative worth to the firm.

A formal definition of performance appraisal is that, it is the systematic evolution of

the individual with respect to his or her performance on the job and his or her
potential for development

“Performance appraisal is a formal structured system of measuring and

evaluating an employee’s job, related behaviors and out comes to discover how
and why the employee is presently performing on the job an how the employee
can perform effectively in the future so that the employee, organization and
society all benefit.”

Under performance appraisal, we evaluate not only the performance of a worker

but also his potential for development.
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3.2 COMPONENTS OF APPRAISAL EVALUATION

As we have seen performance evolutions can be made a verity of reasons-

counseling, promotion, research, salary, administration or a combinations of these
therefore it is necessary to begin by stating very clearly the objectives of the
evolution program. Having done this, the personal evolution system should address
the questions, who, what, when, where, how? Of performance appraisal

“WHO”

The appraisal can be accomplished by one or more individuals involving a

combination of the immediate supervisor, a higher level manager, a personal
manager, the assessee’s peers, the assessee himself and the assessee’s subordinates.

Usually the immediate supervisor must be interested with the task of rating the
assessee because he his most familiar with his work, and because he is also
responsible for recommending or approving personal action based on the
 lOMoARcPSD|22123008

performance appraisal. The staff specialists, i.e. the personal officer also do
appraisal.

They may advise the supervisor while evaluating their subordinates stressing the
need for evidence for making specific appraisal judgments and comparing a
particular subordinate’s evolution with those of others.

The appraisal of an individual may also be done by his peers such appraisal proves
effective in predicting future management success.

This approach has its disadvantage that the individual may rate himself excessively
high then it would be if his superior rated him. Many companies use rating
committees to evaluate employees. These committees consist of supervisors, peers,
and subordinates.

“WHAT”

The “what” of the performance appraisal consists in appraising non supervisory

employees for their current performance and managers for potential? It also
includes evaluation of human trades.

“WHY”

The “why” of an appraisal is concerned with –

a) Creating and maintaining a satisfactory level of performance of employees in

there present jobs.
 lOMoARcPSD|22123008

b) Highlighting employee needs and opportunities for personal growth and

development.
c) Promoting understanding between the supervisor and his subordinates.
d) Providing a useful criterion for determining the validity of selection and
training methods and techniques and forming concrete measures for
attracting individual of higher caliber to the enterprise.

“WHEN”

The ‘when’ answers the query about the frequency of appraisal? It has been
suggested in formal counseling should occur continuously. The manager should
discuss an employee’s work as soon as possible after he has judged it.

“WHERE”

The where indicates the lo0cation where an employee may be evaluated. It is

usually done at the place of work or office of the supervisor.

“HOW”

Under how the company must decide what different methods are available and

which of these may be used for performance appraisal. Based on the comparative
advantages and disadvantages it is decided which method suit the propose best.
 lOMoARcPSD|22123008

3.3

PURPOSE OF PERFORMANCE APPRAISAL

 To create and maintain a satisfactory level of performance.

 To provide information making decision for rewardingly of retrenchment etc.

 To guide the job changes with the help to continuous ranking.

 To contribute to the employee growth and development through training, self

and management development program.

 To facilitate for testing and validating selection tests, interview techniques

through compeering there scores with performance appraisal ranks.

 To facilitate fair and equitable compensation based on performance.

 To help the superiors to have proper understanding about there subordinates.

 lOMoARcPSD|22123008

WHAT SHOULD BE RATED

The seven criteria for assessing performance are:

1. Quality: the degree to which the process or result of carrying out an activity

approach perfection

2. Quantity: the amount produce expressed in monetary terms number of units,

or number of completed activity cycles

3. Timeliness: the degree to which an activity or an result produced

4. Cost effectiveness: the degree to which the use of the organizations resources
(e.g. human, monetary, technological, material) is maximized in the séance of

waiting the highest gain

5. Need for supervision: the degree to which a job performer can carry out job
function without supervisory assistance

6. Interpersonal impact: the degree to which performer promotes feeling of

self – esteem, goodwill and cooperation among co- workers and sub-

ordinates.

7. Training: need for training of improving his skills knowledge.

 lOMoARcPSD|22123008

3.4 OBJECTIVE OFPERFORMANCE APPRAISAL

 A good performance appraisal has following objectives:-

 Help employee to Krishak Bharti Coperative Ltd. His weaknesses, and

improve his strengths, and thus enable him to improve his performance and that

of the department.

 Generate adequate feedback and guidelines from the reporting officers to the

employee.

 Contribution to the growth and development of the employee thru helping in

realistic goal setting

 Help identifying employees for the porpoise of motivating, training and

developing them.

 Generate significant relevant, free and valid information about employees

thus good performance appraisal and review system should primarily focus on

employee development
 lOMoARcPSD|22123008

3.5 METHODS OF APPRAISAL

Broadly all the approaches to appraisal can be classified into:-

 Past-oriented:

 Rating scales
 Checklist
 Forced choice method
 Forced distribution
 Critical incident method
 Behaviorally anchored’ scales
 Field review method
 Annual confidential report
 Essay method
 Cost accounting approaches
 Comparative evolution approach 
Ranking method
 Paired – comparison method
 Future – oriented:
 Management by objectives 
Psychological appraisals
 Assessment center
 lOMoARcPSD|22123008

3.6 METODS OF PERFORMANCE APPRAISALS

Past Oriented Methods

 Rating scales:

This is the simplest and the most popular technique for employee
performance. The typical rating – scales system consists of several numerical
scales, each representing job related performance criterion such as
dependability, initiative output, attendance, attitude, co-operation and the
like. Each scales ranges from excellent to poor. The rater checks the
appropriate performance level on each criterion, and then computes the
employees total numerical scores.
 Checklist:
In this method, the raters don’t evolutes employee performance, he supplies
reports about it and the personal department does the final rating a series of
question are presented concerning and employee to his behavior. The rater,
then, to indicate if the answer to a question about an employee in positive or
negative. Generally , the questions are on yes/no pattern.

 Forced choice method:

In this the rater is given a series of statements about employee. These
statements are arranged in block of two or more, and the rater indicates which
statements is most or least disruptive of the employee

 Critical incident method

 lOMoARcPSD|22123008

The, approaches focus on certain critical behaviors of an employee that

makes all the difference between effective and non effective performance of a
job. Such incidents are recorded by the superiors as and when they occur.

 Behaviorally Anchored Rating Scales

Sometimes this is called behavioral expectation scales, are rating scales
whose scale point are determined by statements of effective and ineffective
behaviors. A rater must indicate which behavior on each scale best describes
an employee’s performance.

 Field review method

This is an appraisal by someone outside the assesses on department usually
someone from the corporate office or H.R department. The outsider review
employee records and holds interviews with the rate and his or her superior .
the method is primarily used for make promotional decision at the managerial
level.

 Annual confidential report method

In this method each employee is rated confidentially by one or more senior
officers for his performance. The report deals with the years work and
general opinion of the rater towards the employee. The main problem with
his method is that it is not data based and the appraisal is done the bases of
impression.

 Easy method
 lOMoARcPSD|22123008

In the essay method, the rater must describe the employee with in a number
of broad categories such as-
a) The rater’s overall impression of the employee’s performance
b) The promotability of the employee
c) The jobs that the employee is now able or qualified to perform
d) The strength and weaknesses of the employee and the traning and the
development assistant required the employee.
 Comparative Evolution Approaches
These are a collection of a different methods that compare one worker’s
performance with that his / her co-workers. Supervisors usually conduct
comparative appraisals. As these appraisals can results in a ranking from best
to worst they are useful on deciding merits-pay increases promotions and
organizational rewards. We can classify it into-
a) Ranking method
In this, the superior his or her subordinates in the order of their merits starting
from the best to the worst,. This method is subject to the hallo and Recency
effects, although ranking by two or more raters can be averaged to help
reduce biases. It advantages include ease of administration and explanation.
b) Paired – Comparison method :-
Under this method the appraiser compares each employee with every other
employee, one at a time. The number of comparisons may be calculated with
the help of formula, which reads thus-:
N (N-1)/2
 lOMoARcPSD|22123008

3.7 360 DEGREE PERFORMANCE APPRAISAL

Typical appraisers are: supervisors, peers, subordinates employees

themselves users of service and consultants. Performance appraisal by all
these parties is called” 360 DEGREE PERFORMANCE APPRAISAL”
1. Supervisors:
Supervisors include superiors of the employee other superiors having
knowledge about the work of the employee and department head or manager.
General practices is that immediate superiors appraise the performance, hitch
in turn reviewed by the departmental head /manager.

2. Peers:-
Peer appraisal may be reliable if the work group is stable over a reasonably
long period of time and perform tasks that require integration.

3. Subordinates:-
The concept of having superiors rated by
subordinates is being used in most organizations today especially in
developed countries. Such a novel method can be useful in other
organizational settings too provided the relationship between superiors and
subordinates are coordinal.
 lOMoARcPSD|22123008

4. Self-Appraisal:-
In individuals understand the objective they are expected to achieve and
the standard by which they are to be evaluated, they are to a great extend in
the best position to appraise their own performance.

5. Users of Service Customers:-

Employee performance in service organization relating to behaviors,
promptness, speed in doing the job and accuracy, can be better judged by the
customers or users of services.

6. Consultants:-
Sometimes consultants may be engaged for appraisal when employees or
employers not trust supervisor and management does not trust the self-
appraisal a peer appraisal or subordinate appraisal.
 lOMoARcPSD|22123008

3.8 THE POST APPRAISAL INTERVIEW

This interview provides the employee the feedback information, and an

opportunity to the appraiser to employee his rating, the trail and behavior he
has taken into consideration etc.
Further it helps both the parties to review standards, set new standards based
on the reality factors and helps the appraisal to offer his suggestion, help,
guide and coach the employee for his advancement.
Thus, the post appraisal interview is designed to achieve the following the
objectives.
 To let employee know where stand
 To help employee do better job by clarifying what is expected of them
 To plan opportunities for development and growth
 To provide an opportunity for employees to express themselves on
performance related issue.
Thus, post appraisal interview is most helpful to the
employee as well as his superior.
 lOMoARcPSD|22123008

3.9 KEY ELEMENTS OF PA SYSTEMS

1) Performance Improvement:-
Performance feedback allows the employee, manager, and
personnel specialists to interview with appropriate action to improve
performance.
2) Compensation Adjustments:-
Performance evaluations help decision – makers determine who
should receive pay raises.
Many firms grants part or all of their pay increase and bonuses based
upon merit, which is determine mostly through performance appraisal.
3) Placement Decisions:-
Promotions, transfers, and demotions are usually based on past on
anticipated performance.
4) Training and Development Needs:-
Poor performance may indicate the need for retraining. Likewise,
good performance indicates untapped potential that should be developed.
 lOMoARcPSD|22123008

5) Career Planning And Development:-

Performance feedback guides career decisions about specific career
paths.
6) Information Inaccuracies:-
Poor performance indicates errors in job analysis information’s
human resource plan, or other parts, or the personal management
information’s systems. Reliance on inaccurate information may have led
to inappropriate hiring, training, or counseling decisions.
7) Job Decision Errors:-
Poor performance may be a system of ill-conceived job designs.
Appraisals help diagnose these others.
8) Equal Employment opportunity:-
Accurate performance appraisals that actually measure job- related
performance ensure that internal placement decisions are not
discriminatory.
9) Feedback to human resource:-
Good/bad performance throughout the organization indicate how
well the human resource function is performing.
 lOMoARcPSD|22123008

3.10

STAGES OF PERFORMANCE APPRAISAL

PROCESS
 lOMoARcPSD|22123008

PERFOMANCE STANDARDS ARE ESTABLISHED

1

2 INFORM THESE STANDARDS

INSTRUCTION GIVEN FOR APPRAISAL

3

FINDIND OUT THE INFLUENCE

4

COMPARING THE PERFORMANCE

5

FINDING OUT DEVIATION

6

COMMUNICATING, THE ACTUAL PERFORMANCE

7

SUGGESTING NECESSARY CHANGES

8

FOLLOW-UP OF PERFORMANCE APPRAISAL REPORT

9
 lOMoARcPSD|22123008

Performance Appraisal is a Nine-Step Process:-

 At the First stage, performance standards are established based on job
description and job specification. The standard should be clear, objective and
incorporate all the factors.
 The Second stage, is to inform these standards to all the employees
including appraisers.
 The Third stage is following the instruction given for appraisal
measurement of employee performance by the appraisers through
observations interview, records and reports
 The Fourth stage is finding out the influence of various internal and external
factors on actual performance.
 The Fifth stage is comparing performance with that of other employee and
previous performance.
 The Sixth stage is comparing the actual performance with the standards and
finding out deviations.
 The Seventh stage is communicating the actual performance of the
employee and other employees doing the same job and discusses with him
the reasons for positive or negative deviations from the preset standards as
the case may be.
 The Eighth stage is suggesting necessary changes in standards, job analysis
internal and external environment.

 The Ninth stage is fallow up performance appraisal report. This stage

includes guiding, counseling coaching and directing the employee or making
arrangements for the training and development of the employee.
 lOMoARcPSD|22123008

3.11 PROBLEMS OF PERFORMANCE APPRAISAL

The major problem in performance appraisal:-

1) Rating Biases:-
The problem subjective measure (is that rating which is not
verifiable by others) has the opportunity for biases include:-

a) Halo effect

b) The error of central tendency

c) The leniency and strictness biases

d) Personal prejudice

e) The Recency effect

 Halo Effect:-
It is the tendency of the raters to defend excessively on the rating of
one trait or behavioral consideration in rating all other traits or behavioral
consideration. One way of minimizing the halo effect is appraising all the
employee by one trait before going to rate basis of another trait.

 The Error Central Tendency:-

Some raters fallow play safe policy in-rating-by-rating all the
employee on the middle point of the rating scale and they avoid rating the
p[people at both the extremes of the scale. They fallow play safe policy
because of a answerability to management or lack of knowledge about the
job and person he is rating or least interest in his job.
 lOMoARcPSD|22123008

 The leniency and Strictness:-

The leniency bias crops when some raters have an tendency to be

liberal in their rating by assigning higher rates consistently such rating do
not several any purpose equally damaging one is assigning consistently
low rates.

d) Personal Prejudice : -
If the rater dislike any employee or any group, he may rate them at

the lower them which may distort the rating purpose affect the career of
these employee.

 The Recency Effect:-

The raters generally remember the recent actions of the employee at

the time of rating and rate on the basis of this recent action.
1) Favorable or unfavorable rather than on the whole activities.
2) Failure of the superior in conducting performance appraisal and post
performance appraisal interview.

3) Most part of the appraisal is based on subjectivity.

4) Less reliability and validity of the performance appraisal technique.
5) Negative ratings affect interpersonal relations system.
 lOMoARcPSD|22123008

3.12 WHY APPRAISAL TECHNIQUES PROVE FAILURE

Performance appraisal techniques have often failed to give a correct assessment of

the employee. The causes of such failure are:-

1) The supervisor plays dual and conflicting role of the both the judge and the
helper.
2) Too many objectives often cause confusion.

3) The supervisor feels that subordinate appraisal is not rewarding.

4) A considerable time gap exist between two appraisal programs.

5) The skills required for daily administration and employee development are in

conflict.

6) Poor communication keeps employees in the dark about what is expected of

them.
7) There is the difference of opinion between a supervisor and a subordinate
concerning the liter’s performance.

8) Feedback on appraisal is generally unpleasant for both supervisor and

subordinate.
9) Unwillingness on the part of supervisor to tell employee plainly how to
improve their performance.
 lOMoARcPSD|22123008

About Employee:-

 Safe and Friendly Work Environment-:

What sort of environment are you providing your employees.

 Use of Employees-:
Is the business maximizing it’s use of employee to best suit the business
needs?

 Employee Knowledge-:
How familiar (what knowledge) are your employee with the running of
machine/equipments, products of the companies? Does employee require
training?

 Employee Happiness-:
Are the employees happy with their wages, rewards and hours of work
given?
 lOMoARcPSD|22123008

PERFORMANCE MATRIX

In principle the individual performance matrix (IPM) can be notionally

divided into two parts-:

 Team matrix

 Individual Matrix

KRA 1 to 5
 For achievement of the set targets, the prescribed credit points would
accrue to all team members for the team performance and to an individual
for the individual performance.
 Any drop / deviation from the targets will lead to ‘ Debit ’ to while the
overall debit points for the negative variance vis-à-vis has been prescribed
for the team the individual will be liable to the lose additional points bin
case of direct responsibility for deviation.
 These ‘debit’ points will be determine depending on gravity of error,
quantum of loss, extraneous/ inhibiting factors, etc. as a part of
appraisal process.

KRA 6

It is intended to cover every individual distinguishing contribution/ efforts

made in respect of either assigned projects or innovations, cost saving
measures value additions etc. this has been specifically design to
acknowledgement and reward individual excellence.
 lOMoARcPSD|22123008

KRA 7

(Health. Safety/fire, Environment) “Debit” will apply to an individual and his

superiors but his not peers / others who may not be connected with the safety
incident. Similarly, there is scope to earn separate credit points for an
individual through safety suggestion and reporting of “near misses ” and
unsafe acts/ conditions/

KRA 8
(Training and HR) this is intended to cover self training, training of
subordinates, for the training programs organized by learning centre are HR
based on individual need assessment of self & subordinates.

These also include quarterly review, counseling and maintaining of

performance diary.

KRA 9

(Quality System & Documentation) this include proper maintenance of each

and every documents of ISO 9000 and 14001 for surveillance audits, also
revision of SOPs / SOCs decided by the plant.

KRA 10

(Industrial Relations ) there is a scope for a team to earn separate credit points
based on the number of implement suggestions. In this case the team means the
concern immediate supervisor, production / department manager and plant
manager.
 lOMoARcPSD|22123008

Disciplinary Action

It will be deemed to be complete when the matter is brought to logical

Conclusion resulting in either appropriate punishment or withdrawal of

Charge sheet. However no debit will be accrued in the event of

Prolonged enquiry beyond the control of the employee. Further for the

Discipline violations not reported and discovered.

Tier - II

The appraisal for managerial key dimension determined carder wise

With 20% weightage.

 lOMoARcPSD|22123008

Performance Diary

The performance diary is a meant to track / capture the significant

performance events whether positive or negative (Credit or Debit). This is
also the tool for recording the personal contribution in terms of innovative
ideas, suggestions, cost saving efforts etc.

The filling up the performance diary is most critical and important aspect on
which the entire system rests. Each and every individual has responsibility to
highlight ‘event’ in the performance diary, timely and properly.

While for an individual on the other hand, it may mean establishing clear
responsibility for a fault/formal operation / misjudgment etc. on the other
hand it will mean recording of credits worthy efforts / contribution which
may otherwise go unnoticed.

It is also essential to mention the impact of the incident in the terms of

beneficial and detrimental consequences as the case may be. Where ever
possible, the consequence needs to be quantified. Two important factors
which is likely to be recorded in the performance diary are as follows-:
 lOMoARcPSD|22123008

Facilitating Factor:

Are those factors that are beyond the control of the appraise that have led to
better performance. Example: Availability of resources in time .

Inhibiting Factor:

Are those factors that are beyond the control of the appraise they have led to
poor performance. EXAMPLE: power failure that has led to loss of output.

Whom it will be Available:

The performance diary will remain in custody of the immediate superior and
it will be the joint responsibility of the appraise to maintain the sanctity of
this instrument through timely and meticulous recording. Infect, maintenance
of “performance diary” has been kept as the important parameter for
performance assessment.

Who will be The Appraiser:

The appraiser will be the sectional head / departmental head.

 lOMoARcPSD|22123008

CHAPTER-4

RESEARCH
METHODOLOGY
 lOMoARcPSD|22123008

RESEARCH

The research design of this project is exploratory. Though each research

study has its own specific purpose but the research design of this project on BSNL
is exploratory in nature as the objective is the development of the hypothesis rather
than their testing. The research designs methods of financial analysis. Through of

comparative balance sheet in comparative statement, I am studying on balance sheet

of BSNL of five year. So taking comparative statement, I am going to analyzed of
five years balance sheet of BSNL

METHODOLOGY

Every project work is based on certain methodology, which is a way to

systematically solve the problem or attain its objectives. It is a very important
guideline and lead to completion of any project work through observation, data
collection and data analysis.
“Research Methodology comprises of defining & redefining problems,
collecting, organizing & evaluating data, making deductions & researching to
conclusions.”

- Clifford Woody
 lOMoARcPSD|22123008

RESEARCH DESIGN

Research Design refers to "framework or plan for a study that guides the collection

and analysis of data". A typical research design of a company basically tries to

resolve the following issues:

a) Determining Data Collection Design

b) Determining Data Methods

c) Determining Data Sources

d) Determining Primary Data Collection Methods

e) Developing Questionnaires

f) Determining Sampling Plan

(1) EXPLORATIVE RESEARCH DESIGN:

Explorative studies are undertaken with a view to know more about the problem.
These studies help in a proper definition of the problem, and development of
specific hypothesis is to be tested later by more conclusive research designs. Its
basic purpose is to identify factors underlying a problem and to determine which
one of them need to be further researched by using rigorous conclusive research
designs.

(2) CONCLUSIVE RESEARCH DESIGN:

Conclusive Research Studies are more formal in nature and are conducted with a
view to eliciting more precise information for purpose of making marketing
decisions.

These studies can be either:

 lOMoARcPSD|22123008

a) Descriptive or

b) Experimental

Thus, it was mix of both the tools of Research Design that is, Explorative as well
as Conclusive.

SAMPLING PLAN:

Sample Size = 50 Employees

Sample Area = BSNL Hyderabad

Duration = 6 weeks

RESEARCH PROBLEM

I have selected that PERFORMANCE APPRAISER as research problem for my

summer training project.

As a research problem is the situation that causes the researcher to feel

apprehensive, confused and ill at ease. It is the demarcation of a problem area
within a certain involving the WHO or WHAT the WHERE the WHEN and the
WHY of the problem situation.
 lOMoARcPSD|22123008

RESEARCH OBJECTIVE

How productivity relates with performance appraisal. In addition, the major factors
of performance appraisal, which have taken a part in increasing productivity of the
organization.

RESEARCH INSTRUMENT USED

 QUESTIONNAIRE:

The term questionnaire usually refers to a self administered

processes whereby he respondent himself read the question and records without
the assistance of an interviewer.

 INTERVIEW:

The interview method of collection data involves presentation

of oral- verbal stimuli and reply in terms of oral-verbal response.
 lOMoARcPSD|22123008

EXPLORATORY RESEARCH
Exploratory research studies are also termed as formulating studies. The main
purpose of such studies that of formulating of the problem for more precise
investigation or of developing the working hypotheses from an operational
point of view. An exploratory research focuses on the discovery of ideas and
is generally based on secondary data. It consists:

 Search of secondary data and literature

 Survey

SEARCH OF SECONDARY DATA AND LITERATURE :

The quickest and most economical way is to find possible hypotheses from the
available literature. The past research may be suitable may suitable sources of
information to develop new hypotheses. The researcher can search them for his
research purpose.

SURVEY REPORT:

Survey means the survey of people who have had practical experience with the
problem to be study. These individuals can be top executives, sales manager,
wholesaler and retailer processing valuable knowledge and information about
the problem environment.
 lOMoARcPSD|22123008

RESEARCH INSTRUMENTS USED:

I have used the following research instrument in my project :-

 QUESTIONNAIRE-:

The term questionnaire usually refers to a self – administered process whereby

the respondent himself read the question and records without the assistance of an
interviewer.

 INTERVIEW-:

The interview method of collecting data involves presentation of oral-verbal

stimuli and reply in terms of oral- verbal response.
 lOMoARcPSD|22123008

SAMPLING TECHNIQUE USED

When field studies are under are under taken in practical life, consideration of
time cost and some other factors almost invariably lead to selection of
respondents. The selected respondents constitutes a sample and the selection
process is called sampling technique.

A sample design is define plan determined before any data are actually collected
for obtaining a sample from a given population. Sample can be either probability
sample or non probability sample.

I have selected simple random sampling in my project.

 lOMoARcPSD|22123008

SIMPLE RANDOM SAMPLING:

This type of sampling is also known as chance sampling or probability sampling

where each item in the population has an equal chance of being selected in the
sample.

SAMPLE SIZE:

When a survey is undertaken and when it is not possible to cover the entire
population the researcher has to answer the basic question – how large should be
sample be ? the sample size decision is related directly to research cost.

The intended sample size is the number of participants planned

to be included in the trial, usually determined by using a statistical power
calculation. The achieved sample size is the number of participants enrolled,
treated , or analyzed in the study.

I have taken 50 people in my sample size as the sample size should be neither so
small nor so large.
 lOMoARcPSD|22123008

METHOD USED FOR DATA COLLECTION

The task of data collection begins after a research after a research problem has
been defined and research design chalked out. While deciding about the method
of data collection to be used for the study the researcher should keep in mind
two types of data-:

1) Primary Data

2) Secondary Data
 lOMoARcPSD|22123008

1. PRIMARY DATA

Those data that have been observed and recorded by the researcher for the
first time in their knowledge.

Sources:

 Questionnaire

 Interview method

2. SECONDARY DATA:

Those data that have been compile by some agency other than user.

Sources:

 Company profile

 Magazine

 Internet

 Books

 Previous report
 lOMoARcPSD|22123008

ANALYTICAL TOOLS USED

The term analysis refers to the computation of certain measures along with
searching for pattern of relationship that exists among data group. Analysis is
essential for a scientific study and for ensuring that we have all relevant data for
making contemplated comparison. Therefore , I have used Tabulation, Graphs
&charts in my project.
 lOMoARcPSD|22123008

CHAPTER-5

DATA ANALYSIS AND

INTERPRETATION
 lOMoARcPSD|22123008

1. Are you aware of the objective of the performance appraisal system?

NO OF
RESPONDENT(SAMPL
OPTIONS E SIZE 50) PERCENTAGE

VERY MUCH

42 84%

SOME WHAT

7 14%

DON’T KNOW

1 2%
 lOMoARcPSD|22123008

90

80

70

60

50

40

30

20

10

0
very much some what don't know

INTERPRITATION- 84% Employees are aware of the object of the

performance appraisal system.

2. Performance appraisal helps the organization in achieving goal.

NOS OF
OPTIONS RESPONDENT(Sampl PERCENTAGE
e size 50)

YES 38 76%

NO 10 20%
 lOMoARcPSD|22123008

DON’T KNOW 2 4%

80

70

60

50

40

30

20

10

0
yes no don't know

INTERPRITATION - 76% Employees say yes that performance

appraisal helps the organization in achieving goal.

3. Hold meeting in the beginning of the year to explain & clarify activity
task & goals to be achieved.

NOS OF
OPTIONS RESPONDENT(Sample PERCENTAGE
size 50)

YES 39 78%
 lOMoARcPSD|22123008

NO 11 22%

90

80

70

60

50

40

30

20

10

0
yes no

INTERPRITATION-: 78% Employees say that yes organized

meetings helps goal and task. While the other 22% employees that are not
very much helpful.

4. Organization has to make a fixed duration for performance appraisal.

NOS OF
OPTIONS RESPONDENT (Sample PERCENTAGE
size 50)

YES 40 80%

NO 10 20%
 lOMoARcPSD|22123008

90

80

70

60

50

40

30

20

10

0
yes no

INTERPRITATION -: 80% Employees agree with that is

organization should have to make a fixed duration for performance appraisal.

While the other 20% employees do not agree with this statement.

5. Satisfied for point allocation on the basis of KRA’s & managerial

dimension.

NOS OF
OPTIONS RESPONDENT(Sample PERCENTAGE
size 50)

FULLY SATISFIED 20 40%

 lOMoARcPSD|22123008

SATISFIED 26 52%

DISSATISFIED 2 4%

UNCERTAIN 2 4%

60

50

40

30

20

10

0
fully sa琀椀s昀椀ed sa琀椀s昀椀ed dissa琀椀s昀椀ed uncertain

INTERPRITATION-: 40% Employees are fully satisfied for point

allocation on the basis of KRA’s and managerial dimension.

6. Performance appraisal affects the working efficiency of employees.

NOS OF
OPTIONS RESPONDENT(Sampl PERCENTAGE
e size 50)

YES 42 84%
 lOMoARcPSD|22123008

NO 8 16%

90

80

70

60

50

40

30

20

10

0
yes no

INTERPRITATION-: 84% Employees say that yes performance

appraisal system affect the working efficiency of employee. While the

other 16% employees do not agree with this statement.

7. Appraisal system is able to develop high result orientation approach.

NOS OF
OPTIONS RESPONDENT(Sampl PERCENTAGE
e size 50)

YES 47 94%
 lOMoARcPSD|22123008

NO 3 6%

100

90

80

70

60

50

40

30

20

10

0
yes no

INTERPRITATION-: 94% Employees say that yes the appraisal

system is able to develop high result orientation approach. While the

other 6% employees do not agree with us.

8. The systems will also contribution in potential appraisal.

NOS OF
OPTIONS RESPONDENT(Sampl PERCENTAGE
e size 50)
 lOMoARcPSD|22123008

36 72%
YES
10 20%
NO
4 8%
DON’T KNOW

80

70

60

50

40

30

20

10

0
yes no don't know

INTERPRITATION-: 72% employees think that the systems will

also Contribution in potential appraisal.

9. Promotion process in the organization is based on –

NOS OF
OPTIONS RESPONDENT(Sampl PERCENTAGE
e size 50)
 lOMoARcPSD|22123008

PERFORMANCE 2 4%

EXPERIENCE 6 12%

BOTH 42 84%

90

80

70

60

50

40

30

20

10

0
Performance experience both

INTERPRITATION-: 4% employees say that promotion says that

process in the organization is based on performance, 12%

employees say that based on experience and 84% say both.

10 .The present performance appraisal system is transparent &

Free from bias.
 lOMoARcPSD|22123008

NOS OF
OPTIONS RESPONDENT(Sample PERCENTAGE
size 50)

YES 42 84%

NO 8 16%

90

80

70

60

50

40

30

20

10

0
YES NO

INTERPRITATION-: 84% Employees agree with this statement that the

present performance appraisal system is transparent and free from bias.

11 .Satisfied with the current performance appraisal system.

NOS OF PERCENTAGE
 lOMoARcPSD|22123008

OPTIONS RESPONDENT(Sample
size 50)

HIGHLY SATISFIED 27 54%

SATISFIED 18 36%

DISSATISFIED 1 2%

JUST SATISFIED 4 8%

60

50

40

30

20

10

0
Highly sa琀椀s昀椀ed Sa琀椀s昀椀ed Dissa琀椀s昀椀ed Just sa琀椀s昀椀ed

INTERPRITATION-: 54% Employees are highly satisfied with the current

Performance appraisal system. While 36% employees are satisfied with the current
performance appraisal system.
 lOMoARcPSD|22123008

11.Hold mee琀椀ng in the beginning of the year to explain & clarify ac琀椀vity task
& goals to be achieved.

NOS OF
OPTIONS RESPONDENT(Sample PERCENTAGE
size 50)

YES 39 78%

NO 11 22%

90

80

70

60

50

40

30

20

10

0
yes no

INTERPRITATION-: 78% Employees say that yes organized mee琀椀ngs

helps goal and task. While the other 22% employees that is not very much
helpful.
 lOMoARcPSD|22123008

12.Organiza琀椀on has to make a 昀椀xed dura琀椀on for performance appraisal.

NOS OF

OPTIONS RESPONDENT (Sample PERCENTAGE

size 50)

YES 40 80%

NO 10 20%

90

80

70

60

50

40

30

20

10

0
yes no
 lOMoARcPSD|22123008

INTERPRITATION -: 80% Employees agree with that is organiza琀椀on

should have to make a 昀椀xed dura琀椀on for performance appraisal. While the

other 20% employees do not agree with this statement.

13.Sa琀椀s昀椀ed for point alloca琀椀on on the basis of KRA’s & managerial

dimension.

NOS OF
OPTIONS RESPONDENT(Sample size PERCENTAGE
50)

FULLY SATISFIED 20 40%

SATISFIED 26 52%

DISSATISFIED 2 4%

UNCERTAIN 2 4%
 lOMoARcPSD|22123008

60

50

40

30

20

10

0
fully sa琀椀s昀椀ed sa琀椀s昀椀ed dissa琀椀s昀椀ed uncertain

INTERPRITATION-: 40% Employees are fully sa琀椀s昀椀ed for point

alloca琀椀on on the basis of KRA’s and managerial dimension.

14. Performance appraisal a昀昀ects the working e昀케ciency of employees.

NOS OF
OPTIONS RESPONDENT(Sample PERCENTAGE
size 50)

YES 42 84%
 lOMoARcPSD|22123008

NO 8 16%

90

80

70

60

50

40

30

20

10

0
yes no

INTERPRITATION-: 84% Employees say that yes performance appraisal

system a昀昀ect the working e昀케ciency of employee. While the other 16%
employees do not agree with this statement

15. Appraisal system is able to develop high result orienta琀椀on approach.

NOS OF
OPTIONS RESPONDENT(Sample PERCENTAGE
size 50)
 lOMoARcPSD|22123008

YES 47 94%

NO 3 6%

100

90

80

70

60

50

40

30

20

10

0
yes no

INTERPRITATION-: 94% Employees say that yes the appraisal system is

able to develop high result orienta琀椀on approach. While the other 6%
employees do not agree with us.

16.The systems will also contribu琀椀on in poten琀椀al appraisal.

NOS OF
OPTIONS RESPONDENT(Sample PERCENTAGE
size 50)
 lOMoARcPSD|22123008

36 72%
YES
10 20%
NO
4 8%
DON’T KNOW

80

70

60

50

40

30

20

10

0
yes no don't know

INTERPRITATION-: 72% employees think that the systems will also

Contribu琀椀on in poten琀椀al appraisal.
17.Promo琀椀on process in the organiza琀椀on is based on –

NOS OF
OPTIONS RESPONDENT(Sample PERCENTAGE
size 50)
 lOMoARcPSD|22123008

PERFORMANCE 2 4%

EXPERIENCE 6 12%

BOTH 42 84%

90

80

70

60

50

40

30

20

10

0
Performance experience both

INTERPRITATION-: 4% employees say that promo琀椀on says that process in

the organiza琀椀on is based on performance, 12% employees say that based
on experience and 84% say both.

18..The present performance appraisal system is transparent &

Free from bias.
 lOMoARcPSD|22123008

NOS OF
OPTIONS RESPONDENT(Sample PERCENTAGE
size 50)

YES 42 84%

NO 8 16%

90

80

70

60

50

40

30

20

10

0
YES NO

INTERPRITATION-: 84% Employees agree with this statement that the

present performance appraisal system is transparent and free from bias.
19..Sa琀椀s昀椀ed with the current performance appraisal system.
 lOMoARcPSD|22123008

NOS OF PERCENTAGE
OPTIONS RESPONDENT(Sample size
50)

HIGHLY SATISFIED 27 54%

SATISFIED 18 36%

DISSATISFIED 1 2%

JUST SATISFIED 4 8%

60

50

40

30

20

10

0
Highly sa琀椀s昀椀ed Sa琀椀s昀椀ed Dissa琀椀s昀椀ed Just sa琀椀s昀椀ed

INTERPRITATION-: 54% Employees are highly sa琀椀s昀椀ed with the current

Performance appraisal system. While 36% employees are sa琀椀s昀椀ed with the current
performance appraisal system.
 lOMoARcPSD|22123008

CHAPTER-6
LIMITATIONS
 lOMoARcPSD|22123008

LIMITATIONS

A few limitations and constraints came in way of conducting the present study,

under which the researcher had to work are as follows:

Ø Although all attempts were made to make this an objective study, biases

on the part of respondents might have resulted in some subjectivity.

Ø Though, no effort was spared to make the study most accurate and

useful, the “sample Size” selected for the same may not be the true

representative of the Company, resulting in biased results.

Ø This being the maiden experience of the researcher of conducting study

such as this, the possibility of better results, using deeper statistical

techniques in analyzing and interpreting data may not be ruled out.

 lOMoARcPSD|22123008

CHAPTER-7

SUGGESTIONS
AND
CONCLUSION
 lOMoARcPSD|22123008

SUGGESTIONS

After having analyzed the data, it was observed that practically there was no
appraisal in the organization. To be an effective tool, it has to be on the
continuous basis. This is the thing that has been mentioned time and again
in the report, as, in the absence of continuity, it becomes a redundant
exercise. Before actually deciding drafting what should be the kind of
appraisal the following things should be taken care of:

1. The very concept of performance appraisal should be marketed

throughout the organization. Unless this is done, people would not
accept it, be it how important to the organization.

2. To market such a concept, it should not start at bottom, instead it should

be started by the initiative of the top management. This would help in
percolating down the concept to the advantage of all, which includes the

top management as well as those below them. This means that the top
management has to take a welcoming and positive approach towards the
change that is intended to be brought.

3. Further, at the time of confirmation also, the appraisal form should not

lead to duplication of any information. Instead, detailed appraisal of the

employee’s work must be done – which must incorporates both the work
related as well as the other personal attributes that are important for
work performance.

4. It should be noted that the appraisal form for each job position should
 lOMoARcPSD|22123008

be different as each job has different knowledge and skill requirements.

There should not be a common appraisal form for every job position in
the organization.

5. The job and role expected from the employees should be decided well
in advance and that too with the consensus with them.

6. A neutral panel of people should do the appraisal and to avoid

subjectivity to a marked extent, objective methods should be employed
having quantifiable data.

7. The time period for conducting the appraisal should be revised, so that
the exercise becomes a continuous phenomenon.

8. Transparency into the system should be ensured through the discussion

about the employee’s performance with the employee concerned and
trying to find out the grey areas so that training can be implemented to
improve on that.

Ideally in the present day scenario, appraisal should be done, taking the
views of all the concerned parties who have some bearing on the
employee. But, since a change in the system is required, it cannot be a
drastic one. It ought to be gradual and a change in the mindset of both
the employees and the head is required.
 lOMoARcPSD|22123008

CHAPTER-8

BIBLIOGRAPHY

APPENDIX
 lOMoARcPSD|22123008

BIBLIOGRAPHY

BOOKS-

Human Resource - V.S.P Rao

Research Methodology - C. R. Kothari

BSNL Manual - Company Magazines

 Annual Report of Organization

 Internal Records of Organization

WEBSITES- www.bsnl.net

www.bsnl.co.in
 lOMoARcPSD|22123008

APPENDIX

QUESTIONNAIRE

(PERFORMANCE APPRAISAL SYSTEM AT B.S.N.L.)

Name…………………………………………………………………..
Designation……………………………………………………………
Department……………………………………………………………

1) Are you aware of the objective of the performance appraisal system?

a) Very much
b) Some what
c) Don't know

2) Performance appraisal helps the organization in achieving goal?

a) Yes
b) No
c) Can’t say

3) Do you hold meeting in the beginning of the explain & clarify activity
task & goals to be achieved?

a) Yes
b) No
 lOMoARcPSD|22123008

4) Should organization have to make a fixed duration for

performance appraisal?

a) Yes
b) No

5) To what extent are you satisfied for point allocation on the basis of KRA’s &

managerial dimension?

a) Fully satisfied
b) Satisfied
c) Dissatisfied
d) Uncertain

6) Do performance appraisal affect the working efficiency of employee?

a) Yes
b) No

7) Whether the appraisal system is able to able to develop high result

a) Yes
b) No

8) Do you think that the system wills also contribution in potential

appraisal?

a) Yes
b) No
c) Can’t say
 lOMoARcPSD|22123008

9) Promotion process in the organization is based on-

a) Performance
b) Experience
c) Both

10) Do you think that the present that the present performance appraisal
system is transparent & free bias?

a) Yes
b) No

11) Are you satisfied with the current performance appraisal system?

a) Highly satisfied
b) Satisfied
c) Just satisfied
d) Dissatisfied

Give your suggestion for the performance appraisal system in

BSNL Lucknow.
………………………………………………………………………
………………………………………………………………………
lOMoARcPSD|22123008